Payday Loans Equal Very Costly Cash: Consumers Urged to Consider the Alternatives

The ads are on the radio, television, the Internet, even in the mail. They refer to payday loans, cash advance loans, check advance loans, post-dated check loans, or deferred deposit loans. The Federal Trade Commission, the nation’s consumer protection agency, says that regardless of their name, these small, short-term, high-rate loans by check cashers, finance companies and others all come at a very high price.

Paying back a payday loan
Usually you'll be given up to a month to pay back the money you borrowed, plus interest.
The most common way to pay back a payday loan is through your bank debit card. When you get the loan you agree to let the lender take the money from your bank account. This is called a continuous payment authority (CPA).
If there isn't enough money in your account to repay the loan on the agreed date, the lender may keep asking your bank for all or part of the money. Charges will be added for late payment.

Stopping the payment
If you cant afford to re pay the loan, you can instruct your bank or card provider to stop the payment being taken. You must do this at least one day before the payment is due.

1 comment:

  1. I live in Dublin and can't turn anywhere. The Government now want to take an extra €1450 off me this year. Thanks for your advice and anyone else can offer me advice I would be so gratefull...Molly.